There is little evidence that the Government’s Funding for Lending Scheme
(FLS) is getting through to businesses, the business minister has admitted.

Michael Fallon said there is “not enough evidence yet” that the flagship scheme to cut the cost of loans is helping credit-starved small companies.

Mr Fallon said he is continuing to put pressure on banks to make sure that Government lending schemes, including FLS and the Enterprise Finance Guarantee, are properly used.

“The taxpayer is putting a lot of money on the table now. It’s really important [the schemes] are properly taken up,” he said.

“I do find the banks tell you an individual story that they’re not the problem and so on. We need to make sure that taxpayer-funded schemes are getting through to the SMEs that need it.”

The business minister, who was speaking to a House of Lords Committee earlier this week, said the Treasury and the Business Department are working on a plan to publish bank lending figures by region and business size.